SBI Releases Landmark Report Celebrating 10 Years of PMMY: Empowering India’s Grassroots Entrepreneurs

By Eram Shaikh --
Wednesday, 02 Apr, 2025

On April 2, 2025, the State Bank of India (SBI) released a detailed research report titled “PMMY: A Decade of Audacious Dreams – Bolder, Bigger and Indeed Beautiful”, marking the 10-year milestone of the Pradhan Mantri Mudra Yojana (PMMY). This flagship scheme, launched in 2015, has become a cornerstone of India's financial inclusion and MSME growth strategy.

PMMY was designed to provide collateral-free, easy access to institutional credit for micro and small enterprises through three loan categories—Shishu (up to ₹50,000), Kishor (₹50,000–₹5 lakh), and Tarun (₹5 lakh–₹10 lakh, later extended to ₹20 lakh with Tarun Plus). Over the past decade, the scheme has witnessed over ₹33 lakh crore in disbursements across 52 crore loan accounts. Notably, the dynamic evolution of borrowers—while 93% of loans in FY16 were Shishu, that share dropped to 52% in FY25 as many enterprises matured into higher credit brackets, demonstrating business growth and scale.

The report emphasises PMMY’s role in driving inclusive entrepreneurship. Around 68% of beneficiaries are women, and nearly half belong to SC/ST and OBC communities. States like Bihar, Tamil Nadu, and West Bengal have emerged as leaders in terms of women-led entrepreneurship, with Maharashtra reporting the highest share of women among account holders at 79%.

SBI’s research also highlights the scheme’s impact on financial inclusion, particularly in underdeveloped regions. Through advanced econometric models and spatial distribution analysis, it was found that states with lower financial inclusion levels—such as Bihar, Odisha, and the Northeast—have received proportionately greater benefits. This strategic reorientation is not only narrowing the regional divide but also enhancing financial and social empowerment where it is needed most.

Furthermore, the average loan ticket size has nearly tripled—from ₹38,000 in FY16 to ₹1.02 lakh in FY25—reflecting increased confidence in small businesses and improved credit appetite. Women-led MSMEs, now constituting over 20% of Udyam-registered units, contribute significantly to employment generation and economic output.

Looking ahead, SBI envisions the adoption of digital-first approaches, like the Unified Lending Interface and Account Aggregator framework, to streamline credit delivery. As PMMY enters its second decade, the program stands as a testament to the transformative power of accessible finance in unlocking India’s entrepreneurial potential at the grassroots.

SBI Releases Landmark Report Celebrating 10 Years of PMMY: Empowering India’s Grassroots Entrepreneurs. On April 2, 2025, the State Bank of India (SBI) released a detailed research report titled “PMMY: A Decade of Audacious Dreams – Bolder, Bigger and Indeed Beautiful”, marking the 10-year milestone of the Pradhan Mantri Mudra Yojana (PMMY). This flagship scheme, launched in 2015, has become a cornerstone of India's financial inclusion and MSME growth strategy.

PMMY was designed to provide collateral-free, easy access to institutional credit for micro and small enterprises through three loan categories—Shishu (up to ₹50,000), Kishor (₹50,000–₹5 lakh), and Tarun (₹5 lakh–₹10 lakh, later extended to ₹20 lakh with Tarun Plus). Over the past decade, the scheme has witnessed over ₹33 lakh crore in disbursements across 52 crore loan accounts. Notably, the dynamic evolution of borrowers—while 93% of loans in FY16 were Shishu, that share dropped to 52% in FY25 as many enterprises matured into higher credit brackets, demonstrating business growth and scale.

The report emphasises PMMY’s role in driving inclusive entrepreneurship. Around 68% of beneficiaries are women, and nearly half belong to SC/ST and OBC communities. States like Bihar, Tamil Nadu, and West Bengal have emerged as leaders in terms of women-led entrepreneurship, with Maharashtra reporting the highest share of women among account holders at 79%.

SBI’s research also highlights the scheme’s impact on financial inclusion, particularly in underdeveloped regions. Through advanced econometric models and spatial distribution analysis, it was found that states with lower financial inclusion levels—such as Bihar, Odisha, and the Northeast—have received proportionately greater benefits. This strategic reorientation is not only narrowing the regional divide but also enhancing financial and social empowerment where it is needed most.

Furthermore, the average loan ticket size has nearly tripled—from ₹38,000 in FY16 to ₹1.02 lakh in FY25—reflecting increased confidence in small businesses and improved credit appetite. Women-led MSMEs, now constituting over 20% of Udyam-registered units, contribute significantly to employment generation and economic output.

Looking ahead, SBI envisions the adoption of digital-first approaches, like the Unified Lending Interface and Account Aggregator framework, to streamline credit delivery. As PMMY enters its second decade, the program stands as a testament to the transformative power of accessible finance in unlocking India’s entrepreneurial potential at the grassroots.